October 31, 2011

Update: Court Approves Settlement Creating Ombuds Program for Pfizer

The federal court has approved the settlement of a shareholder lawsuit against Pfizer, Inc., and its subsidiary Pharmacia & Upjohn Company, Inc., that will require the company to create an Ombuds program for employees.

The court's order states:

Separately, the proposed settlement requires Pfizer to create an Ombudsman program so as to provide the company's [*340] employees with an alternative, confidential means for bringing work-related concerns to the attention of senior management without fear of reprisal. See Corporate Governance Proposal at 6. The Ombudsman will operate a stand-alone office under the direction of Pfizer's Chief Compliance Officer, and is authorized to report his or her concerns directly to the Regulatory Committee. Id. All conversations with the Ombudsman will remain confidential, except where the employee raises an issue that risks harm to an individual or the company or where disclosure is required by law. Id.

The order also said, "Both plaintiffs' and defendants' experts also point to the Ombudsman program ... [**15] as likely to materially enhance the Company's ability to meet its compliance obligations." (The case cite is In re Pfizer Inc. S'holder Derivative Litig., 780 F. Supp. 2d 336, 341 (S.D.N.Y. 2011).)

Translate

Organizational Ombuds

Organizational Ombuds serve as a confidential, independent, neutral and informal dispute resolution resource for a specific entity. They are accessible to a defined population and can advocate for fairness. These unique characteristics distinguish Organizational Ombuds from Classical Ombuds, mediators, arbitrators, and other alternative dispute resolution professionals. The term "Ombuds" is shorthand for "Ombudsman," "Ombudsperson" and "Ombuds Officer," which also are used widely.

About Me

I am a University Ombudsperson, Mediator, and Attorney. The material in this blog does not reflect on any matters I have handled or am currently handling. This information should not be construed as legal, medical or psychological advice; readers should consult their own professionals for advice.
(I can be contacted at Tom [dot] Kosakowski [at_sign] gmail [dot] com.)